Property II

Covenants, Conditions, and Restrictions


CCRs create reciprocal restrictions and obligations burdening each lot for the benefit of every other lot.

CCRs are unreasonable if they are wholly arbitrary, violate fundamental public policy, or impose burdens on the use of the land that substantially outweigh the restriction's benefits to the development's residents.

If a restriction is ambiguous, it will be interpreted in the least restrictive way.

If a business acts in good faith with a reasonable investigation, courts will defer to them in accordance with the business judgment rule. If the business or CIC is acting unreasonably, the court will use their own reasonableness in the substituted judgment rule.